Use IRS Withholding Calculator To Plan Any Adjustments, Controller Yee Says
March 11, 2018 - Sacramento – The Franchise Tax Board (FTB) urges taxpayers to plan ahead to withhold the correct amount of taxes from their paychecks to account for recent changes in federal tax law.
Controller Betty T. Yee, Chair of the FTB, encourages everyone to take advantage of the Withholding Calculator offered by the IRS to determine if they should adjust withholding to avoid a big tax bill and potential penalties when it comes time to file tax year 2018 returns in early 2019.
“Proper tax planning now can help avoid an expensive surprise later,” Yee said. “Withholding the right amount with each paycheck throughout the year makes it less likely that you will have to write a big check to pay taxes later.”
To make any changes, employees should fill out a new Form W-4, Employee’s Withholding Allowance Certificate, and present it to their employer.
The Federal Tax Cuts and Jobs Act of 2017 increased the standard deduction, removed personal exemptions, and made many other taxation changes.
Modifications to withholding made now will not affect tax year 2017 returns due on April 17.
Source: CA. FTB